Isoft receives bid approaches

Isoft, the beleaguered software supplier to the £6.2bn ($11.7bn) National Health Service IT project in the UK, has received several informal approaches from both private equity firms and trade rivals looking to buy all or part of its business.

Meanwhile, Accenture, the consultancy that has taken a $450m charge for losses on the same project, is looking to renegotiate its contract with the government and potentially withdraw from at least part of the project.

The developments add to the sense of turmoil surrounding the scheme known as Connecting for Health, the world’s largest civilian IT project, which is running about two years behind schedule.

Isoft on Friday published its results for the 12 months to the end of April only hours before its shares were due to be suspended because of a failure to report the figures. It reported a loss before tax of £343.8m.

The company also announced that it had secured financing for the next 15 months, buying the company breathing space as it attempts to secure new revenue streams and cut costs before a possible rights issue or sale.

Isoft on Friday revealed a new arrangement with Computer Sciences Corporation which, like Accenture, is a lead contractor on the NHS project that subcontracts software provision to Isoft.

There was, however, no news of any renegotiated deal with Accenture, where relations are understood to be far worse — each side blaming the other for delays to implementation of the project. Shares in Isoft rose 32 per cent to close at 56p yesterday.

Accenture, CSC, Isoft and Connecting for Health all declined to comment.